Jakarta. President Joko "Jokowi" Widodo acknowledged the public's concerns regarding the 3 percent salary deduction for the Housing Savings Fund (Tapera) contributions.

"It's normal for people to have concerns about a new policy, calculating whether they can afford it or if it’s burdensome," President Jokowi said in Jakarta, on Monday.

The President likened the Tapera policy to the initial public reaction to the implementation of the national health insurance scheme BPJS Kesehatan, which was also a topic of intense discussion when first introduced in 2011 and implemented in 2014.

"Just like BPJS in the past. But once it was implemented, people started to see the benefits, like no hospital fees. These are the benefits that will be felt over time. Usually, there is always a debate before people see the advantages," Jokowi explained.

The government recently revised the Government Regulation on the Administration of the Housing Savings Fund. The new regulation stipulates that the contribution rate for the Housing Savings Fund is set at 3 percent of the salary for state-owned enterprises (SOE) and private companies employees, as well as civil servants and freelancers.

The contribution is shared, with employers covering 0.5 percent and employees covering 2.5 percent. For self-employed workers, the Tapera contribution is 3 percent of their reported income, which they must pay themselves.

Heru Pudyo Nugroho, a BP Tapera commissioner, said that Tapera contributions are paid periodically by participants over a certain period. These contributions can only be used for housing financing. The principal savings will be returned along with the accrued returns once the membership ends.

Participants categorized as Low-Income Communities (MBR) can benefit from long-term housing loans, including mortgage loans (KPR), house construction loans (KBR), and house renovation loans (KRR) with terms up to 30 years and fixed interest rates below market rates.